First Quarter 2016 Financial Highlights1
- Net Revenues increased 75.5% year-over-year to
RMB1,093.5 million( $169.6 million), exceeding the high end of the Company’s original guidance of RMB1,060 million( $164.4 million).
- Adjusted Net Income increased 49.1% year-over-year to
RMB294.4 million ( $45.7 million).
First Quarter 2016 Operating Highlights
- Continued Expansion of Mobile Traffic: In
March 2016, the number of average daily unique visitors who accessed the Company’s mobile websites and mobile applications reached 8.8 million and 7.2 million, respectively. Combined, this represents an increase of 65.3% in the total number of average daily unique visitors on mobile platforms compared with March 2015, and an increase of 16.3% compared with December 2015.
- Strong Media and Leads Generation Value: In the first quarter of 2016, revenues from media services and leads generation services increased by 22.6% and 46.8%, respectively, compared to the corresponding period of 2015.
- Significant Expansion of Transaction Platform: A total of 4,957 new vehicles were sold through Authome’s B2C transaction platform, including both the direct sales and the commission-based business models in the first quarter of 2016.
With a solid start to the year, I am confident in our ability to execute our growth strategies to further reinforce our strengths and competitive advantages as the leading online media and transaction facilitator for automobile consumers in China.”
Detailed Overview of Financial Results for First Quarter 2016
Key Financial Results
|(In RMB Millions except for per share data)||1Q2015||1Q2016||% Change|
|Adjusted Net Income2||197.5||294.4||49.1||%|
|Diluted Earnings Per Share3||1.44||2.11||46.5||%|
|Net Cash Provided by Operating Activities||283.9||162.2||-42.9||%|
Unaudited First Quarter 2016 Financial Results
Net revenues increased 75.5% to
- Media services revenues mainly includes revenues from automaker advertising services and regional marketing campaigns conducted by certain automobile brands’ regional offices. Revenues from media services increased 22.6% to
RMB442.1 million ( $68.6 million) from RMB360.8 million in the corresponding period of 2015. The increase was mainly due to an increase in average revenue per automaker advertiser, as automakers continued to allocate more of their advertising budgets towards Autohome’s online advertising channels.
- Leads generation services primarily includes revenues from (i) dealer subscription services, (ii) advertising services sold to individual dealer advertisers, and (iii) other value-added services. Revenues from leads generation services increased 46.8% to
RMB384.1 million ( $59.6 million) from RMB261.5 million in the corresponding period of 2015. The increase was primarily attributable to a 31.6% year-over-year increase in average revenues per paying dealer as dealers continued to allocate a greater portion of their budgets towards the Company's services.
- Online marketplace revenues mainly includes revenues from the new vehicle transaction business, which is primarily composed of direct vehicle sales and commission-based services facilitating transactions on the
Autohome Mallplatform, and other transaction-related revenues. Online marketplace revenues were RMB267.3 million ( $41.5 million), compared to RMB0.6 million in the corresponding period of 2015. Revenues from direct vehicle sales accounted for 93.5% of online marketplace revenues, or RMB250.0 million( $38.8 million).
Cost of Revenues
Cost of revenues increased 271.7% to
Operating expenses increased 62.4% to
- Sales and marketing expenses increased 50.9% to
RMB329.1 million( $51.0 million) from RMB218.2 million in the corresponding period of 2015. This increase was primarily due to (i) an increase in salaries and benefits as a result of increased sales and marketing staff which is in-line with the Company’s rapid growth, and (ii) an increase in marketing expenses associated with the promotion of the Company’s mobile applications. Sales and marketing expenses for the first quarter of 2016 included share-based compensation expenses of RMB11.1 million( $1.7 million), compared with RMB10.6 million in the corresponding period of 2015.
- General and administrative expenses increased 71.5% to
RMB72.0 million ( $11.2 million) from RMB42.0 millionin the corresponding period of 2015. This increase was primarily attributable to an increase in salaries and benefits. General and administrative expenses for the first quarter of 2016 included share-based compensation expenses of RMB24.8 million( $3.8 million), compared with RMB9.3 millionin the corresponding period of 2015.
- Product development expenses increased 99.1% to
RMB115.5 million( $17.9 million) from RMB58.0 millionin the corresponding period of 2015. This increase was primarily attributable to an increase in salaries and benefits as a result of growth in product development staff which is in-line with the Company's rapid growth. Product development expenses for the first quarter of 2016 included share-based compensation expenses of RMB10.8 million ( $1.7 million), compared with RMB8.2 million in the corresponding period of 2015.
Operating profit decreased 4.1% to
Income tax (expense)/benefit
There was an income tax benefit of
Net Income and EPS
Net income increased 47.8% to
Adjusted Net Income and Non-GAAP EPS
Adjusted net income, defined as net income excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions, increased 49.1% to
Balance Sheet and Cash Flow
The Company had 3,679 employees as of
- Successful Hosting of the 2016
China Auto Forum: In April 2016, Autohomemanagement was invited to host and speak at the globally renowned China Auto Forumwhich was sponsored by the China Association of Automobile Manufacturers(CAAM), and the International Organization of Motor Vehicle Manufacturers(OICA). Other speakers included companies such as Peugeot, Chery Automobile, Roland Berger, McKinsey & Company, etc.
- Receipt of Preliminary Non-Binding "Going Private" Proposal: On
April 18, 2016, the Company announced that its board of directors has received a non-binding proposal letter, dated April 16, 2016, from Mr. James Zhi Qin, director and chief executive officer of the Company, Boyu Capital Advisory Co. Ltd, Hillhouse TBC Holdings L.P.and Sequoia China Investment Management LLP, proposing a “going-private” transaction to acquire (a) all of the outstanding Class A ordinary shares (including Class A ordinary shares represented by American depositary shares of the Company (“ADSs”, each representing one Class A ordinary shares of the Company) not already owned by the Consortium and (b) all of the outstanding Class B ordinary shares of the Company at a purchase price in cash equal to $31.50per Class A ordinary share, $31.50per Class B ordinary share and $31.50per ADS. Then, on April 26, the Company announced that its board of directors has formed a special committee consisting of three independent, disinterested directors to evaluate the "going-private" proposal.
- Secondary stake sale by
Telstrato Ping An Insurance Group: On April 15, 2016, Telstra Holdings Pty Limited, the largest shareholder of the Company, announced that it had entered into an agreement with Ping An Insurance (Group) Company of China, Ltd.for the sale of 47.7% of total issued shares in the Company for $1.6 billion. Telstrawill retain a 6.5% interest in the Company after completing the transaction.
This forecast reflects the Company's current and preliminary view on the market and operating conditions, which are subject to change.
Conference Call Information
The Company will host an earnings conference call at
Dial-in details for the earnings conference call are as follows:
Please dial in ten minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is 9768186.
A replay of the conference call may be accessed by phone at the following numbers until
Additionally, a live and archived webcast of the conference call will be available at http://ir.autohome.com.cn.
Safe Harbor Statement
This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates" and similar statements. Among other things,
Use of Non-GAAP Financial Measures
To supplement net income presented in accordance with U.S. GAAP, we use Adjusted Net Income, Non-GAAP basic and diluted EPS and Adjusted EBITDA as non-GAAP financial measures. We define Adjusted Net Income as net income excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions. We define Non-GAAP basic and diluted EPS as Adjusted Net Income divided by the basic and diluted weighted average number of ordinary shares. We define Adjusted EBITDA as net income before income tax expense, depreciation expenses of property and equipment and amortization expenses of intangible assets and interest expense, excluding share-based compensation expenses. We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance, in addition to net income prepared in accordance with U.S. GAAP. We believe these non-GAAP financial measures are important to help investors understand our operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess our core operating results, as they exclude certain expenses that are not expected to result in cash payments. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation expenses have been and will continue to be incurred in the future and are not reflected in the presentation of the non-GAAP financial measures, but should be considered in the overall evaluation of our results. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliation of non-GAAP and GAAP Results" set forth at the end of this press release.
1 The reporting currency of the Company is Renminbi (“RMB”). For the convenience of the reader, certain amounts throughout the release are presented in US dollars (“$”). Unless otherwise noted, all conversions from RMB to US$ are translated at the noon buying rate of
2 Adjusted net income is defined as net income excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions. For more information on this and other non-GAAP financial measures, please see the section captioned "Use of Non-GAAP Financial Measures" and the tables captioned "Reconciliations of Non-GAAP and GAAP Results" set forth at the end of this release.
3 Each ordinary share equals one ADS.
|CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME|
|(Amount in thousands, except per share data)|
|For three months ended March 31,|
|Leads generation services||261,548||384,054||59,562|
|Total net revenues||622,904||1,093,461||169,582|
|Cost of revenues||(103,136||)||(383,390||)||(59,459||)|
|Sales and marketing expenses||(218,159||)||(329,127||)||(51,043||)|
|General and administrative expenses||(41,988||)||(72,017||)||(11,169||)|
|Product development expenses||(58,008||)||(115,490||)||(17,911||)|
|Loss from equity method investments||-||(1,629||)||(253||)|
|Other income, net||107||936||145|
|Income before income taxes||215,752||211,568||32,811|
|Income tax (expense)/benefit||(50,198||)||33,083||5,131|
|Earnings per share for ordinary shares|
|Weighted average shares used to compute earnings per share attributable to Class A and Class B common stockholders:|
|Other comprehensive income/(loss), net of tax of nil|
|Foreign currency translation adjustments||3,897||(4,843||)||(751||)|
|RECONCILIATION OF NON-GAAP AND GAAP RESULTS|
|(Amount in thousands, except per share data)|
|For three months ended March 31,|
|Plus: income tax expense/(benefit)||50,198||(33,083||)||(5,131||)|
|Plus: depreciation of property and equipment||10,712||15,361||2,382|
|Plus: amortization of intangible assets||1,476||1,138||176|
|Plus: share-based compensation
|Plus: amortization of acquired intangible assets of Cheerbright, China Topside and Norstar||1,138||1,138||176|
|Plus: share-based compensation expenses||30,830||48,629||7,542|
|Adjusted Net Income||197,522||294,418||45,660|
|Non-GAAP Earnings per share for ordinary shares|
|Weighted average shares used to compute earnings per share attributable to Class A and Class B common stockholders:
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|(Amount in thousands, except as noted)|
|As of December 31,||As of March 31,|
|Cash and cash equivalents||2,152,647||2,232,265||346,195|
|Amount due from a related party||1,645||4,963||770|
|Prepaid expenses and other current assets||338,677||312,326||48,438|
|Deferred tax assets, current||45,977||68,841||10,676|
|Total current assets||5,742,475||5,933,391||920,191|
|Property and equipment, net||103,554||96,828||15,017|
|Goodwill and intangible assets, net||1,538,433||1,537,295||238,414|
|Other non-current assets||21,512||23,518||3,647|
|Total non-current assets||1,787,601||1,792,114||277,933|
|LIABILITIES AND SHAREHOLDERS’ EQUITY|
|Accrued expenses and other payables||833,473||796,642||123,549|
|Advance from customers||27,214||31,037||4,813|
|Income tax payable||224,973||201,884||31,310|
|Amount due to a related party||23,444||7,926||1,229|
|Total current liabilities||2,156,534||2,069,845||321,005|
|Deferred tax liabilities||489,910||482,342||74,805|
|Total non-current liabilities||522,506||514,938||79,860|
|Total shareholders’ equity||4,851,036||5,140,722||797,259|
|Total liabilities and shareholders’ equity||7,530,076||7,725,505||1,198,124|
For investor and media inquiries, please contact:
Vivian XuInvestor Relations Autohome Inc.Tel: +86-10-5985-7017 Email: firstname.lastname@example.org Christian Arnell Christensen Tel: +86-10-5900-1548 Email: email@example.com